Muskrat Falls behind schedule; delays with pouring concrete highlighted
A quarterly report from the oversight committee for the Muskrat Falls project says that delays with pouring concrete among the reasons why the project is behind schedule, even though the date for first power remains the same.
Capital construction cost estimates for Muskrat Falls are $6.99 billion and at the end of March 2015, the incurred costs to date were $2.43 billion.
The report says pressures to the project's schedule currently being experienced could affect costs and schedule.
The critical path to first power in December 2017, though, remains unchanged, but "risk levels for some activities" have increased.
Planned costs for the project at this point were estimated at $2.58 billion and at $2.43 billion are under budget. However, the construction progress currently sits at 25.2 per cent — while planned progress was 31.4 per cent.
That means work at Muskrat Falls is behind schedule.
The report states the performance measures for construction "continue to show scheduled slippage," at the facility, particularly when it comes to progress on the powerhouse and intake.
"The committee notes that the slippage is primarily attributable to issues with volume of concrete placement at the Muskrat Falls site," the report states.
"The independent engineer indicates that concrete placement is tracking behind plan and has observed a considerable growth in the gap between actual concrete placement and planned concrete placement during the period from January to March 2015."
Nalcor Energy has also increased the risk level for concrete placement at the powerhouse and river diversion station during this quarter. According to the report, Nalcor has increased management attention on the contractor's performance in that part of the project.
Productivity goals
Achieving — and maintaining — productivity improvements at Muskrat Falls are critical to maintaining the original timelines, the committee noted.
To maintain the projected timeline, production improvements will be needed and sustained at the generating facility.
"In particular, the contractor's actual performance and concrete placement rates over the summer months will determine if project milestones will be impacted," read the report.
"Mitigation actions continue to be implement to address the schedule issues at the generating facility. Nalcor report improvements in concrete placement rates for the months of May and June 2015."
Work on the Labrador-Island Transmission Link is also tracking behind, as well as work at the powerhouse and turbine generators.
Minister of Natural Resources Derrick Dalley said in a statement that Nalcor has already implemented mitigation plans to ensure the project gets back on track to ensure timeline goals are met and maintained.
"The committee's report notes that production improvements at the hydroelectric generating facility will be required to maintain the milestone schedule for the powerhouse and intake," he said in the statement.
"Nalcor and the contractor have implemented actions to address these risks and the committee will monitor progress over the important summer months."